This week SunGard Data Systems increased its capability to analyze trading data through a partnership with Google. The use of big data analytics is not new to the financial industry. Whether the goal is to analyze trading data or fundamental data to determine ways to increase trade profitability, identify new investment opportunities or manage risk – data analysis has long been a critical component of participating in the markets.
What is changing rapidly is the entrance of firms that have not been traditionally associated with the financial industry to aid the industry stalwarts. As Steven Silberstein mentions in this article from Bloomberg Business – “Google has really built big data into their fabric, both on the storage and creative retrieval of it, and that analytic speed and capability is very important.” These traditionally tech focused firms will only provide benefit and extend the analysis capabilities of investment firms, financial firms, traders, FinTech firms and the stock markets as a whole.
As Mr. Silberstein also mentions “You could build and run this yourself, but it would be very expensive”. Which leads us to the other area of change – with growing focus on big data analytics, text based analysis and news analysis for the stock markets the costs of providing these valuable analytics services is becoming more accessible to all sizes of market participants not just the largest firms.